Hi
I am currently 2.5 years into an Iva.
Debt of £20k
Currently paying in £89 per month
Have a mortgage with equity
Thinking of offering a settlement figure?
Thinking £2500 to start
Can you advise what sort of figure would Be acceptable
Thank you

Hi. Creditors would be looking for an offer near to what they signed up for, so, based on your remainig payments, say 30 plus 12 for equity (assuming equity more than £5k) = 42 payments at £89 would be £3738.

Unfortunately your payments are pretty close to the lower threshold which makes an IVA worthwhile, so you do not have a lot of room to wriggle. £2,5k might do it, but I would go in with £3k. Although both IP and creditors will be saving on administration fees over the next few years, there will also be around £500 adding to fees to cover the variation meeting -- so they won't be financially better off, but will see the debt off their books sooner.

If I was to offer the amount to settle and the creditors rejected, would I be able to offer another amount higher and if they reject each time is it the case of going higher on the settlement orbwould they come back with an amount they would accept?

You could come back with a higher offer if they refuse the first --- but they would not play ball if you kept coming back with others, each getting higher. The thinking is that a F&F should be the best offer you can affordably make. If you keep coming back with more they will know there is more to be had !!

You could come back with a higher offer if they refuse the first --- but they would not play ball if you kept coming back with others, each getting higher. The thinking is that a F&F should be the best offer you can affordably make. If you keep coming back with more they will know there is more to be had !!

Yes ok I see what you mean. So if they reject the first offer, go a little higher then if they reject that then leave it there and continue with the Iva. We really want to end this Iva so here's hoping.

The higher and more attractive you offer the more likely your creditors are to accept. You could try the lower figure to test the water and then make a subsequent offer but I agree with Foggy creditors will get wise if you keep increasing it and could hold out for the full amount.

There is possibly a fee for the variation charged by your IP (standard is £500) too which creditors may take into account.

I am a licensed IP with over 14 years experience at Neville & Co.I cover the South West area and provide advice on all areas of insolvency, including IVAs. http://www.nevilleco.co.uk 01752 786800